tv Countdown to the Closing Bell With Liz Claman FOX Business July 15, 2015 3:00pm-4:01pm EDT
and but then to have a more perfect union after the war that has failed and it is happening right in front of us right now. >> it will not be a surprise if we continue to use the as the step back. the civil unrest now outright violence happening right now. that picture right there alive scene out of greece. protesters are furious what is going on in that building right now three molotov cocktails outside parliament. greek parliament is set to about to pull greece out of
the of whirlpool -- it prime minister tsipras tries to call a the revolts from members of his own party. look at how was started 30 minutes ago anarchist begin to throw those firebombs at riot police in these nine games that are played their starting fires and the dancing and retreating. said in the far back to see the police who are trying to protect to keep the people like that away from the parliament you can see these protesters are wearing of a gas mask and some are making their own at this hour so it could get worse.
we break-in several voices but now a member of the independence party is encouraging him to stay and paid no on the deal that the european union should not shoulder the never ending that. with those buildings that are surrounded that is one of the buildings and police are working very hard to keep control of what appears to be a growing situation. you can also hear what sounds like fireworks. we don't know if those are bullets but it is an expanding and situation we are keeping a very close eye on. nigel we will keep of pictures on the screen but what does this represent?
is this the death of greece because the protest is frightening. claim sure people inside parliament know what is going on. >> what is happening there is the death of democracy. fame of the politics. two weeks ago the greek people have a referendum to talk about the terms of their membership despite massive threats you will all lose your jobs and they voted no. despite that their own prime minister recalled that referendum to feel that they were water imported from the french air inter and leaders and signed into a package cigna began a more strict than the one that the people agreed to.
the reason democracy works is a tax as a safety valve. if you take away from people the most powerful thing they possess, namely their ability to change their destiny then what are you left with? other than civil disorder. liz: i am not surprised the closer that this got considering the germans who are furious. you have certain factions to are very unhappy about this situation but we will catch up the of viewers as there is outright violence where in less than two hours it is to vote on that very severe anti-austerity plan that he could call a bluff to the rest of the european union.
the 300 members it appears more than half of the party is against this. not all are voting members there are 15 congressmembers to will vote. they're all kinds of groups and the 13 independence will have the of the vote. >> the european project designed to bring people together to give a harmonious future now is up party called golden door and admirers of german fascism it shows how slow things have some. i don't like what will happen but mr. tsipras is finished because he marched his country of the hill to rebel and then he backed down. after the vote he looked like a beaten man already a cannot predict the result
but if i was a member of the greek parliament to vote together a package to advocate. >> you advocate going back to the drachma? >> absolutely. it will be a massive devaluation. >> for the u.k. involvement osborn has demanded that they indemnifies the treasury but that mechanism is forced for the banks that have been closed two weeks you would be on the hook which works out to me 11 billion heroes. >> yes. et will cost the u.k. taxpayer money but the one
good piece of news with the corporate businesses said the shed to say by the way they try to keep greece inside the euro but it needs to the pharaoh to have a chance at all for recovery. liz: we have of a live report right now. >> i am just down the street from where it is going on i can hear the activity but it seems it is under control. it flared up for a while with a tear-gas and molotov cocktails but now people are hanging around with a strong police presence that parliament is just now starting to debate this measure.
the legislation and needs to be introduced with the creditors. but many people here are a greek they voted no to further austerity the prime minister agree to a package much worse and they say he played a rotten game of poker but while there is a massive revolt, half have signed a declaration of a horrible suffocating nature that there is a spirit of unity as they band together with tsipras to get this through they feel it is essential that the greeks stay in the ural but the sense is that the people cannot handle any more austerity as the salaries are cut 40 percent in benefits are limited. but there is a sense of
shock the prime minister went against their will. we will see what happens tonight it is likely to go on late with the deadline midnight it is after 10:00. the part of it is a tory is for getting things done very late also the possibility there could be further strikes. the prime minister could result in - - resign. right now they are trying to make their presence known who are voting on the fates of greece. liz: i am sure they know what is going on. 43 minutes ago prison protesters some were civil servants who decided not to go to work, i don't want to pended of them but described as an artist joined what is going on around 6:00 p.m.
eastern the began to throw molotov cocktails than the fires began with all kinds of police presence to show what bin right to gear they advanced and the protesters were back but many of the protesters near to come with the gas masks. in m&a, as a fox business contributor what happened with zaph flash crash the similar pictures happened then will vitiate the market? >> i don't think it will shake the market because of where the federal reserve is. it is upsetting for their greek people and the stability of europe. but i am more optimistic than nigel about the prospects of european unity. sometimes in a democracy
they have to go against the vote lincoln did that to keep the union together if you listed winston in churchill with a resounding popularity with the peace accords that is the abysmal failure. sometimes the crowd is right sometimes it is not he did play poker or a very bad hand he thought there would be a financial crisis as a result to get them to vote no. but a combination of the federal reserve the policymakers have contained that contagion. liz: i know when to call a riot or a skirmish but does this change the vote? >> i don't take it does i am a little more aggressive but
it is not something i take will lead rattle the leadership of the greek government. >> behalf to except the package. >> i disagree. >> look at the big picture the year rose though it is a disaster that jervis hate the greeks and the greeks hate the germans you should have heard the language this is not working all over the mediterranean has been forced into a depression much of which was wholly unnecessary by having stock in the wrong currency over 10 years in though interest-rate i hope and pray for the people of greece for liberty and freedom that they break out of this straight jacket of the road to get their currency and democracy and their self-respect and pride
back because we were witnessing right now wonder screen will only get worse. liz: standby we have the closing bell ringing in 48 minutes. our markets are not moving any further lower but we are waiting for the vote. the crowd is growing slightly but that could be police presence. will that put the eye of the station on a path to austerity? the word of new to me it is not clear if there prime minister tsipras has enough yes votes and we have our military analyst coming up. stay tuned.
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stay in the -- euro zone. but began as the straight has escalated into a face-off as anarchists are throwing molotov cocktails outside of parliament where tsipras is in the fight for his political life to getting enough votes to pass when he had worked very hard to convince the people of greece to vote against two weeks ago. we bring in our military analyst. general, you are a history matters then that matters with the european union and and what does this mean?
>> this could not happen at a worse time right now. because greece is the nexus in this region and. bid has ben a court in the bottle stopping the unrest the greek navy intercepts immigrants trying to make it from syria to italy and the greek army that tries to block the huge land migration from bosnia to a germany. the military is extremely capable but they don't have to a nickels to rub together so already they're looking to people like vladimir putin as an ally in with what is about to happen. but at the very time the involvement has not been more critical or essentials essentials, we look at greece falling away from
nato. liz: there is the broad discussion. i saw something that was disturbing that appeared to be those green laser beams that they're pointing at the police. >> i think the police are doing a good job. first of all, they blocked access to parliament and overwhelmed the protesters with numbers. look closely the actual insurgents better throwing the cocktail's they're all fairly small very their traditional black uniform but the fear is that this will drift into the general population and when that happens it is entirely possible this could get out of the and. >> general you are missing
the point i am a law-abiding nato supporting british citizen who happens to be in politics if i was a citizen i would be there tonight. the greek political class aided and abetted from grade papers from goldman sachs took them into a currency which they were never suited for. and the result is the economy has contracted by over to 5% with 65 percent youth unemployment and they have been delayed to stay in the currency for fear that it will bring the "house of cards" down. that has absolutely nothing to do with the membership of nato. if you will increase tuesday actually, you want it to be prosperous but it is the membership of the ural -- euro that threatens the place in the world.
>> but my point is where it sits in the region of global strife in the good that they can do. i mentioned a court in the bottle to stem illegal immigration and push back particularly into central europe and should they look via their way -- the other way it is already extremely critical and dangerous the situation could get worse. liz: the accusation about goldman sachs is years ago when greece was attempting to get membership in judy eurozone there was the accusation that goldman helped to move the assets off their books to make them appeal to of those expectations which you have to hear chiru.
but this is a huge economic story as well. >> i will accept that as fact but we will talk about today. if they come out of the eurozone they will devastate the pensioners and civil servants and most of the economy if you go to a devaluation scenario right now you were at $0.63 with the pensions if you go to devaluation with the drachma it is about 11% you will wipe out 80 percent of the savings. i am not here to argue what happened was certainly not happened this time that shenanigan went on about where we are today. but just like the marshall plan the german and the stronger nations with the portugal -- portugal and italy greece and spain but they will not do that if you look at this scenario the
best scenario right now is to stay with the euro. liz: also need to stay with the closing bell 36 minutes away, as the deputy finance minister resigned earlier today in greece on the heels when the actual finance minister resigned although he is still there staring things up inside parliament. global markets are still waiting for the greek parliament to vote on those austerity measures to open the doors for another bailout. it is not clear where this vote will go because more than half of the prime minister's own members are against this austerity deal. our market is trending lower. not a big move. 32 points with a dow jones
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liz: what we've done here we're about to split our screen. what you're first seeing here is the inside of parliament where we have watching actual debate over the austerity plan in greece. the communist party leader just said, quote, history is not repeating itself as tragedy but as farce. he is criticizing the government for signing up to such a harsh austerity package. we want to bring in more guests here. we have matt sclapp, a republican strategist. hank stein could have is a democratic strategist. this creates a problem if the violence outside becomes that much worse. if greece somehow doesn't take the vote, matt, you take it first.
what does the president do here? what do the candidates say about it? they're talking about donald trump and other things than action that could affect the united states. >> what is going on internationally with iranian nuclear deal, greece is incredibly important lesson not just what is happening on the street there, what will happen all over the place where people spend too much. this experiment with socialism in european countries obama is exporting into america, you simply get to a point can you continue to spend other people's money. i can't stand this term austerity. it is responsibility. if you take out credit card, somebody float you, you have to make your payments. greece can't. they have to have a fundamental restructure of the economy. put me in the nigel faraj, this whole experiment for greece with the european union and currency has clearly been a disaster. liz: hank, i need to know, because the president probably has to address this at some
point, or jack lew, the treasury secretary can do when you have molotov cocktails outside of the greek parliament but really not our battle here. >> it is our battle in some ways. this could be reversal of nearly 70 years of american foreign and military policy as the general touched on, the end of the truman doctrine which provided security in that part of the world to insure communists would not control the government and there be some stability that was very serious at the time. it is much more serious today. even worse the united states be a bro gated responsibility to help europeans making germany effective lit exchequer of the entire continent. germany is doing exactly what it did, if you read the well-respected german social and economic historian when it conquered the country in 1940. revalue the currency, took the good out, revalue the currency out the door. not a good way to run a system united states will pay with less security in the world.
>> let me challenge that for a minute. >> sure. >> i don't think there is a question about security as much a question of eventually if you are going to cover somebody's losses and debt they have to have internal reforms. what the people of greece said basically they want their ridiculous labor laws, they want to not get fired from their job. >> sure. >> we have to have complete reform in greece if they get a helping hand. liz: matt, can i interrupt say, may well be according to the general an issue of security because greece's shores are being washed up with many, many immigrants. isis, islamic state has been very honest about saying we need entrance in there. >> if we don't, if they don't change their ways in greece, it will become a bigger security problem. the more they are in this precarious financial position, don't take the reforms that are needed internally, they will be on a precipice that is very serious on security. >> i'm not an expert whether people should pay their bills. i am expert on politics and phd in the field.
tell you the following, if greece goes the wrong direction, united states will have significantly more problems. for the eurozone, it probably wasn't going to work anyway, allowing germans to control the action is not wise idea. bismarck, he who controls central europe controls the world. guess who the united states gave control too? we should not delegate our responsibilities to other people of the response is greece and we'll pay the price for it. liz: thank you very much. he no you have to go. general, want you to weigh in here, while these are taped pictures, we can look outside at a live situation still very tense right now, your comments then at this point about a growing crowd? >> yeah. real quick. just remember, to the gentleman's point earlier, remember, 1948, the greek economist party was very, very powerful. and they, we came within a hair's breath of losing greece to the soviet orbit. this is a country that is known
for its volatility and its awninger and radical left-wing politics -- anger. this is not as if they're rioting in germany where they only riot on sidewalks. this is a country that has both anger and fear. and fear comes from the realization that, yeah, now, if they fall out of the euro, they will have to pay their debts. let me get to the final point and that is this idea where they sit in the world. look, in politics geography matters and greece is the most geopolitically, central and sensitive piece of territory in all of this horrible conflict in the middle east. and if they cut free, if they're not able to support, to take their place in the moment, god only knows what's going to happen to the volatile middle east as it floods into central europe. this is bigger than the drachma and the euro. this is a transnational disaster and it affects those of us who are watching from here in the united states.
liz: interestingly as we see the crowd continue to grow, we see our markets come up off the lows of the session and the greek etf, grek, is actually moving higher. we're not going anywhere. we're taking a quick break. we need to you stay with us. the closing bell is about 25 minutes away. we'll be right back. ♪ these two oil rigs look the same. can you tell what makes them so different?
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liz: breaking news. we have now just received new pictures coming in to fox business. these are street-level protests, from the police side, shot by journalist who is are watching police in riot gear just outside of the parliament in athens. and these police are battling anarchists and protesters who are very much against what they feel is the potential of what is going inside of parliament that
is a vote that may very well say, yes to more austerity. the anarchists are very unhappy with that. you can see this is the periphery around the parliament. and the police in riot gear are working very hard to advance and then pull back just a bit. we have fox business crews there. we have watching this very, very closely at the moment. we're going to keep pictures up. i'm joined by the president of the american helleic chamber of commerce. it is one of the biggest influential business organizations in greece. this is a very touchy situation. we're sorry for your capital and what is going on. what do you think about the vote that will go on in parliament at 6:00 p.m. eastern? >> liz, this is indeed a very difficult night. the government and prime minister are trying to pass the new measures through the parliament. there are some street level
protests and even some rioting in the streets right now. there is, as you know, always a small minority that is demonstrating on the streets. this happens most of the time i'm afraid. however, the vast majority of the people are for the euro and for greece to remain in the eurozone and the prime minister's proposal, i think will be supported by not only the vast majority of cabinet and his party but also by the opposition. liz: well, it's more than small pockets. perhaps rioting small pockets throwing molotov cocktails, but truly important to mention that it appears from what we have heard, alexis tsipras, the prime minister, is unable to garner a real majority of votes to say yes to the austerity, plan, which he just encouraged greeks to vote against a few weeks ago? >> in reality it was a different
plan at the time. we did speak about it last week. yes, i think the prime minister realized even in the last moment this was the right direction for the country and i think he went back to the, you know, to the european friends and partners and he was able to negotiate a deal that was indeed maybe harder. i say reasonable at the time. and under the circumstances. and it seems like the plan today has his full support. now opposite what you're saying, my understanding is that although the prime minister doesn't have the majority of his party and i mean the syriza party, he has majority of the votes on the cabinet and the positions. so i suspect even austerity, as you call it correctly, the plan, it will pass, will pass with high flags from the parliament today. liz: okay, he is saying, nigel,
it will pass in the parliament. the nigel i'm referring to is the independent party very much against greece remaining in the eurozone, hoping they vote bense it. nigel, simos is making case it will pass. >> i'm listening with as ton maisch meant. i have ex-goldman sachs bankers and military members per and establishment. the very same people who thought greece should join the euro after contraction of economy over 25% with 60% youth unemployment, with the country on the edge of bankruptcy and hospitals running out of medicine it is all okay, should pass in parliament tonight and only small minority on the streets. 60% of the greece public voted in open referendum to say no more. they did that at some point. at this some point the establishment, big banks, big
politics, vested interests must wake up to the fact that the opinion of people matters. i say this, if i had been a no voter, and i was a no voter and seen my prime minister turn his back on my under intense bullying from europe and would be completely furious. i completely understand what is on those streets. >> nigel, you are part of the establishment. you look great in that suit. >> no. >> you're voting no, exits, now returning to the drachma. what is your three-to-five year plan for the greeks? what do you say to the greek pensioners and civil servants that are going to be down to eight to nine cents of dollar where they would be in the euro? >> yeah, yeah. >> go ahead. >> this shows, this shows a misunderstanding what the devaluation is. when a currency devalues against the dollar and against the euro, that does not mean that your pension in greece falls by the same amount because the cost of everything else in greece goes down as well.
look, is greece staying in euro? >> you understand importing and exporting say something like that. >> i do. i understand. hang on. hang on. i understand cost-push inflation. we saw it in iceland. in 2008, had an 80% devaluation of their currency. but they're now back in good steady growth. greece should never have joined euro. she was after flicked with the wrong interest rates. she has now the wrong currency. she needs a major devaluation. without it, without it, she will become a third world country. liz: we will if simos is correct whether we see a yes vote. thank you, for joining us. >> allow me. liz: quickly, 10 seconds if you could. >> i understand his own views on the european union, even drachma and greece's role in it. this will pass and this time if we do go through with reforms, together with some reforms for
growth, everything will be much better. absolutely convinced. liz: we appreciate you being there. everybody staying in their streets. we do have the violence continuing in athens. our markets holding steady. stay tuned, we're coming right back. we have traders watching this too. they will give us some context. you're driving along,
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you see police facing off against molotov cocktail-throwing, the term is an a exists. you -- anarchists. this is termed as civil servant strike. we're looking at a greek etf called grek which has jumped last half hour, which is up a full 10%. we'll bring in the traders. keith bliss, toed horowitz. you're all watching this. keith what is is like on the floor there? >> took a different tone on the floor as we saw the riots occur. we thousand the vote would be iffy at best. we see the protests. greek lawmakers have real serious decision on their hands. not sure which way it will go. our markets are holding up pretty well but tell you what? watch the futures, as this vote gets close to midnight deadline, it could go either way, markets react pretty violently. similar to the "flash crash"
when we saw the last greek riots. i hope it doesn't happen but certainly it is there for the offing. liz: todd, we saw that five years ago. we saw the "flash crash" which some attributed to a fat finger trade. we had similar split screen. david asman and i were anchoring that very day and markets plumed 1000 points in the blinks of an eye. we had similar riots outside of the greek parliament on our screen at the time. todd, futures, what are you guessing? >> hi, liz. great coverage, by the way. i think what you're seeing here the market is very calm right now. we've seen a little bit of selling and jump in volatility but i think keith is right, the key will be tonight but really the traders here priced in, most likely going to be a no. i don't think it's a real surprise they will be left out because i believe as i said all along merkel wanted them out in the first place. she made it so hard for them to stay they will let them go.
i think vote will take them out. this will be end of it and probably see a drop. liz: give me a line on oil which is dropping. a lot has to do with the fact we're a little closer to nuclear deal with iran. >> oil is taking a beating last couple weeks. frankly i'm a little bit surprised. iran doesn't have excess capacity to pump into markets right now but with the stuff you've been seeing stuff going on geopolitically, volatility from asset class bleeds into another and those pictures are not looking too good. liz: good to see all of you. todd, keith, thank you so much. we'll be right back. we do have a situation that is very tense on the ground. we're watching this with our traders. and with of course nigel faraj of the u.k. independent party and anthony scaramucci. we're a few minutes away from the closing bell. stay tuned.
liz: four minutes before the close. what we have is a situation where the greeks are deciding whether to vote yes or no to the austerity plan which is described as draconian, dispeckable -- despicable, barbaric by people right now. it is unclear whether tsipras, the prime minister, has a majority to pass this thing. while he may not have it in his own party he certainly has it in some of the other political parties. certainly more facialist political parties are forcing to say? the your roe zone. nigel faraj is steadfastly against greece staying in eurozone. skybridge capital founder, fox business's anthony scaramucci. this is superimposed of riots going on outside of the parliament at the moment. nigel, we have a few minutes left. looks like our market may go through. the vote will be for the greeks
to say in the eurozone because there doesn't seem too much volatility here. >> i expect the vote to carry by the prime minister with the diminishing support in the his own party. if there is any equity, he will lose and forced to resign. he marched the greek people up the hill saying i will give you a better deal. he finished giving them a real deal. if we believe in democracy he really ought to two. >> anthony, how long should he last. >> i agree with nigel. he should go, matter of time, one to three months. greek etf is up 10%. that is telling us something, liz. liz: what is it telling us? >> the market is ahead of the vote. the vote will go down in the positive. finally nigel and i two establishment members agree on something. look at that. >> don't call me the establishment. call me many things but i was in the world of business. >> that accent makes you part of the establishment nigel.
>> i said euro would be failure and i'm being proved right sadly. liz: we are thrilled to have you both during a very difficult hour here as we watch what is going on in greece. arm any scaramucci of skybridge. nigel faraj of u.k. independent party. we're thrilled to have him exclusively. time to hand him over to melissa francis, t-minus one hour. something tells me that vote in parliament will not happen at 6:00 p.m. eastern. not sure show. melissa: look at scenes outside. we have a lot on our plate. in addition to that, liz, we're watching earnings out of netflix, that is the other big story of the hour. we're expecting that at top of the hour. we have full team coverage on that. you want to keep an eye on it. of course we're keeping eye on explosive situation going on in greece. as we get closer and closer to this vote. and you see the rioting continue in the street there. as the closing bell sounds here on wall street. here is a look where the major averages are ending the day right now.
you can see the dow, moving to the downside here as we watch events going on in greece. dow is down about eight points. the s&p trading lower as well, across the board, you see traders there. [closing bell ringing]. the bell is sounding. russell right now lower. s&p down two points. you cecil very trading. vix higher, the volatility index. here is everything you need to know now. chaos in greece. rallies turning violent with protesters launching molotov cocktails at police who responded with tear gas. tens of thousands are now gathering to voice opposition to a bailout deal being debated in parliament as we speak right now. the vote is expected at any moment with all of that going on in the street, here is what is going on inside as they debate this bailout. we're going to take to you athens for an update in just